The fitness club chain's stock fell more than 10% in the
after-hours session, and was last trading about $13.20 per share.

Speaking at the Harbor Investment Conference, Axler said the
company has a "questionable business strategy."

He said the company has "unachievable revenue goals," saying it
wants to run 4,000 clubs with a membership base of 6,500 per
club.

He also called the company a "glorified equipment reseller." He
said that the company has unsustainable margins, no barriers to
entry (a lot of "copycats"), and rapidly rising competition in
the fitness space.

On the accounting side, Axler said he thinks that the company has
some issues with its equipment purchases and resales.